Ambuja Cement Stock - Aambuja Cement Share Price Target 2022

Aambuja Cement (AAM) stock has gained tremendously in recent months, but it is still far from its target price of Rs 22. The company has announced plans to invest more than 5 million tonnes in the next few years, which is good news for investors. However, there are a few points to keep in mind. Firstly, this is a high-growth company, and you should be aware that the market for cement is highly competitive. Secondly, its profitability is largely dependent on the price of raw materials.

Price

Ambuja Cements has recently announced a fundraising plan to boost its expansion. The cement company plans to invest around Rs 3,500 crore in its expansion program. This would enable it to add over 40 MT of cement capacity.

The cement sector has been under pressure in recent months. This was a result of price hikes and rising raw material costs. However, the cement industry is expected to regain its footing in the next three years. It is expected that government focus will help in improving demand growth. In addition, the cement company has a good balance sheet and low debt.

The cement company has expanded its capacity in Bhattisgarh and Rajasthan. They will also be adding a new plant in Bihar. The plant will add 7.0 MT of GUs.

As per the cement company's latest financial report, its consolidated revenue has increased by 7.5% to reach Rs 8,033 crore in the June quarter. Meanwhile, its net profit has reduced by 94 percent to Rs 51.3 crore in the same period.

Despite the drop in profits, the Ambuja cement stock has been trading near its highs. Buying a share at this point is recommended, as it will give good returns in the long term.

In the short term, however, the Ambuja cement stock has been under pressure due to rising fuel prices. However, the cement company has taken measures to mitigate the cost spikes.

The cement company is investing in an efficient composite cement product. Additionally, it has a large presence in the north. Therefore, it is on track to expand its cement capacity by 9m tonnes in Ropar in Punjab.

Aside from the recent rally in the cement stocks, the sector is also expected to improve its profitability in the coming months. However, the sector's weak fundamentals prevent it from achieving higher valuation multiples.

The cement industry has been facing a steep rise in global energy prices. As a result, the industry has seen a decline in EBITDA/ton. However, management expects that the EBITDA/te gap will improve in the future.

Fundamentals

Ambuja Cement has been a good buy in the recent past, but there have been some downsides. Inflationary pressures and rising fuel and coal prices have taken their toll. The company's net profit dropped 94 percent in the June quarter and revenue was 11 percent lower than the same period last year.

But in the second half of the fiscal, the company expects demand to pick up. It will also gain efficiencies in its supply chain. This should result in an improvement in EBITDA / te.

Currently, the share price is trading in a narrow range. It is possible that it may continue to trade in this zone. Earlier this week, Ambuja Cements announced a fundraising plan.

It said it would invest Rs 3,500 crore in expansion. The company will increase capacity by 8.5 MT by the end of Q4CY24. A new plant in Punjab and an 8.5 MT brownfield clinker expansion in Chhattisgarh will add to the company's cement production.

However, the company's margins are expected to drop in the next quarter. The company has improved margins at the Marwa-Mundwa plant.

The company has been making progress in gaining a leadership position in the cement industry. It has introduced innovative products and implemented a corporate environment policy.

Ambuja Cement has a large marketing set-up. The company also has a strong balance sheet. While there is some downside in the stock, the company has the potential to give investors good returns over the long run.

Some brokerages see upwards of 45 percent upside in the stock. For example, Jefferies says the company has 20 percent upside. Moreover, a number of brokerages say the valuations are overly expensive.

BofA Securities has cut its EBITDA per tonne estimate for 2022 by 9%. The firm believes that the cement sector will recalibrate in the next three years.

As Ambuja Cements and Adani Group merge, the company will become the second largest cement player in the country. It also hopes to expand faster with the Adani Group.

The company's stock is under pressure and has dropped 4% in 2018. The upcoming EGM between shareholders and Ambuja Cements is on October 8. If the market reacts negatively to the company's announcement, the stock will likely fall.

Recent 5 million tonne expansion

The latest 5 million tonne capacity expansion by Ambuja Cements (ACC) is an aggressive move by the company. This will help drive better volumes than historic levels, and contribute to a long-term strategy of capacity expansion. It is expected to add three MTPA of clinker and one MTPA of grinding to the existing capacity of 30 MTPA.

As part of the expansion, the company is setting up a new plant in Marwar Mundwa, Rajasthan, which will increase the company's clinker capacity by 3 MTPA. The facility will also improve cement sales by five MTPA. In addition, the plant will receive additional government incentives.

The plant will begin operations in the July-September quarter. Ambuja Cement will also start supplying product from four more plants in 2021.

Ambuja's current capacity expansion plans will see the company increase its capacity by five million tonnes in the next two or three years. With this, it would be the largest cement player in the North and Central regions.

Goldman Sachs maintains a 'buy' rating on the stock. In a research note, the firm said that it expects ACC to expand capacity in the near future.

Jefferies raises its target price to INR 380 from INR 320 apiece. However, it expects valuations to remain expensive. Moreover, the company will be spending about Rs 10,000 crore to expand its capacity.

JP Morgan is neutral on the stock. It believes that Ambuja Cements has strong margins and a low cost base. However, it is concerned about the industry's weak fundamentals.

The cement industry is facing a major spike in fuel and raw material prices. However, it has been able to lower costs through energy efficiency measures, and by adjusting its fuel mix.

The company has started installing a Technical Information System at its manufacturing units. This helps measure production data and analyse the quality parameters. Besides, the company will continue to perform application-oriented product testing and random market samples.

In addition, the company will optimize its SO3 across locations. Besides, the company has implemented a cross-belt analyser for real-time quality monitoring at its Marwar plant.

Motilal Oswal's rating on the stock

The shares of cement company Ambuja Cements soared 10 per cent on Wednesday to hit a record high of Rs 568 on the BSE. Analysts have given the stock a positive bias and upgraded it to 'buy' from'sell'. However, some of them are cautious about the prospects of Ambuja Cements over the medium term. They believe that the company may have underperformed the industry in CY23.

Some analysts believe that the company has a diversified pan-India market presence and that its capacity additions are timely. However, the firm's EBITDA/tonne is expected to decline at a CAGR of 4% over the next three years.

The company's net profit was down 14% on the same period last year. This was due to increased fuel prices, which reduced profitability. But, Ambuja also reported better volume growth.

In addition to that, the company has a lower cost structure. However, the recent rally in the stock has pushed valuations above historical levels. Therefore, Motilal Oswal brokerage firm revised its target price to Rs 7210 from Rs 6290.

Analysts expect a 13-14% increase in office space and urban infra in CY22. Furthermore, they expect momentum in Bharatmala, metro projects and the warehousing sector. It is expected that these factors would help cement demand.

However, the increase in the ocean freight rate and the fuel inflation has made operating costs in the industry more expensive. This may pressure cement makers to raise their prices in the future.

The company's production loss may also drive incremental volumes at regional peers. Hence, analysts expect the industry to experience an increase in supply risk in the near term.

Nevertheless, Motilal Oswal has maintained its buy rating and target price on Ambuja Cements. The company's stock is a preferred pick for investors.

Meanwhile, Jefferies has boosted its outlook on the stock to 'buy'. JP Morgan has cut its target price to 'underweight'. Other top picks are Ultratech Cement, Shree Cement and JK Cement.

Meanwhile, analysts expect consolidation in the cement industry. Large players will help to bolster the sector's valuations.

Ambuja Cement Gets BUY Rating From HDFC Securities

Ambuja Cement has had a rough year, with its share price going down significantly. But now, it has a BUY rating from HDFC Securities. Having a BUY rating from a major investment bank is always a good sign. Hopefully, this will help the company continue to grow and make good profits.

Shree Cement has a BUY rating

Shree Cement has been around for a while and has garnered plenty of accolades. Some of the notable ones include the CNBC TV-18 Award for India's best Risk Management Strategy and the Golden Peacock Award for HR excellence. In addition, it was also ranked as one of the Best Employers in the country by the Institute of Directors.

The company has three main brands: Rockstrong, Bangur and Shree Ultra. It is also the largest cement manufacturer in North India, with annual installed capacity of 43.4 million tons per annum. Besides manufacturing cement, it is also involved in synthetic gypsum and other related products. Founded in 1978 by a group of industrialists from Kolkata, the company operates its plants in Rajasthan, Uttarakhand, and the state of Delhi.

While the stock has fallen in the past few months, it remains a buy. This is in large part due to the company's solid financial track record and its ability to generate cash. A look at its recurring dividends tells a story. For example, in the last fiscal year, Shree Cement paid out a whopping 12% of its income.

The company is also known for its environmental and social credentials. In fact, it has been ranked as the most environmentally friendly cement maker in the world by the Energy and Environment Foundation. Moreover, the company is a leader in the solar and wind power industries. As such, it has a total renewable energy power capacity of 752 megawatts.

Considering its impressive credentials, it is no surprise that the company has a BUY rating. In fact, the company has a price-to-earnings ratio that is in line with the industry average. Furthermore, the stock is also in the midst of a multiyear growth cycle that should help keep its shareholders satisfied. One can only hope that this trend will continue.

With its impressive track record, a BUY rating, and the ability to pay out dividends, it is no wonder that Shree Cement is on the radar of many investors. To make the most of your investment, it pays to learn more about the company.

HDFC Securities has a BUY rating

Ambuja Cement share price has broken out from a consolidation pattern and now forms a bullish flag on its daily charts. Analysts remain bullish on the company's prospects. They expect a revival of volumes in the second half of the current fiscal and increased demand for warehousing space.

However, the rising cost of fuel and power is expected to hamper the profitability of the industry. The company reported a 14% decline in net profit over the past three months. Nevertheless, the stock price has strengthened and analysts have increased their target prices.

In addition, the company has received an equity infusion of Rs 20,000 crore. This infusion is a positive sign for the company's future and could enable it to achieve organic capacity growth over the next few years.

Besides, the company has optimised its fixed costs and specific energy consumption. It has also benefited from effective logistics management. It has a net cash position of around Rs 4,340 crore in the current fiscal.

Nonetheless, the company has a history of laggard capacity expansion. However, it can still reach 105-110 MTPA capacity organically in the coming three-four years. At the current rate of cost inflation, it is likely that it would need to pass through price hikes in order to keep the medium-term profitability in check.

While the company has a 'buy' rating, analysts say that the valuations are not cheap compared to the competition. Still, there are upside potentials due to synergies and favourable market conditions.

As a result, analysts have assigned equal weight to the bull and bear case for the stock. According to them, the stock price has the potential to go up by more than 30%.

While the company may not be as pricey as some of its peers, its high-growth ambitions could cause supply risk to emerge in the sector. Also, the group's focus on volume versus realisation has led to lower estimates of growth.

On the other hand, the company has been able to narrow its efficiency gap with its competitors. The stock has also experienced an acceleration in volumes after its breakout. Ultimately, Ambuja has the potential to benefit from the Adani infrastructure platform.

ACC-Ambuja Cement merger could delay expansion

In May last year, ACC and Ambuja Cement announced that they were considering a potential merger. Both companies have strong brands and have a deep manufacturing and supply chain infrastructure. They have a combined market capitalisation of over Rs 1.2 lakh crore. However, recent inflationary pressures on consumers have muddied their prospects. This is a major concern for cement companies.

With the current demand scenario, consolidation is predicted as a trend in the cement industry. It could boost the valuations of mid cap names. The companies are expected to rationalise and increase their pricing power.

Amid speculation that Adani Group may be interested in acquiring Ambuja Cement, a special committee of directors has been constituted to evaluate the merits of a merger. A merger would give the acquirer one of the strongest cement assets in India. However, analysts warn against debt-funded acquisitions.

A potential buyer would need a large balance sheet to fund a big investment. Analysts also warn that current valuations may not be cheap. Despite this, the acquisition could yield a number of synergies. These savings will translate into improved net profit.

The two cement companies will benefit from increased capacity. They have plans to expand their cement capacity to 39.9 MT by December 2024. Currently, Ambuja has a grinding capacity of 31 mtpa and ACC has 33.5 mtpa. Combined, these two companies are set to increase their capacity by 70 mtpa by 2026.

Besides the synergy potential, the combination of the two companies' operations will provide the acquirer with a strong position in the Indian market. The companies have 80 ready-mix concrete plants and a strong supply chain network.

Ambuja and ACC have stated that they will use their cash to invest in new capacity. Moreover, they will use the merger to reduce their overall cost of acquisition. As a result, they will reduce their overall costs by about $1.5 billion.

The price of the acquisition is estimated at around Rs 82,000 crore. However, the cost of the bid could go up to Rs 5,000 crore depending on the assets being acquired.

Monthly price action analysis

Ambuja Cement is a leading cement maker in India. The company's focus on the environment and sustainability has earned it recognition from prestigious bodies such as ICSI. It has also won eight awards for Corporate Excellence.

The company is planning to increase its capacity by 9 million tonnes in Ropar in Punjab and Bhattisgarh in Rajasthan. It is also implementing a corporate environment policy that aims at lowering its carbon footprint. However, profits are expected to decline at a CAGR of 6%.

The company's margins are likely to bottom out in the second quarter of the current fiscal. But expectations of demand growth are strong in the next two to three months. There is a favourable government focus that could give the sector an impetus. Besides, large players are expected to help in consolidating the industry.

Credit Suisse has cut its target price for the stock from Rs 400 to Rs 335. However, the firm still sees the stock as a 'buy'. On the other hand, BofA Securities has slashed EBITDA per tonne estimates for the company for the 2022 and 2023 periods by 9%.

Axis Securities has given the stock a HOLD rating. Emkay Global has assigned a BUY call for Shree Cement, while Kotak Equities believes the sector will recalibrate over the next three years.

Motilal Oswal has issued a note stating the impact of the surge in petcoke prices. While it expects cement makers to raise cement prices, it also mentioned that higher volumes in the second half of the current fiscal will be a boon for the cement industry.

Meanwhile, brokerage firm Nirmal Bang has upgraded its rating on the cement sector from neutral to positive. Nirmal Bang said the improvement in pricing and operational cost efficiency has made the sector more profitable. He has also noted that the competitive intensity of the market is stable.

With so many variables to consider, it's a good idea to do your own research. Moreover, you should determine your portfolio's risk tolerance and goal before making any decision. If you're looking to make an investment in Ambuja Cement, be sure to conduct research first.

Aditya Birla Group Buys Holcim's Share in Ambuja Cement

The Aditya Birla Group is joining the race to buy out the Swiss cement giant Holcim's stake in Ambuja Cement and ACC. According to the report, the deal is expected to earn per share (EPS) and return on capital employed (RoCE) accretive.

World's third-largest cement maker outside China

Ambuja cement is one of the top eight cement manufacturers in the world. It is also the third-largest outside China. The company has a capacity of 31 million metric tons.

It is part of the Aditya Birla Group, which owns UltraTech Cement. Its market capitalisation is expected to hit US$10 billion by 2020.

Holcim entered the Indian market in 2005. Since then, it has invested in India's cement industry. Initially, it bought a stake in Gujarat Ambuja Cement and then in Mumbai-based Associated Cement Company. But the group struggled to survive in the Indian market. In January, it spent US$800m to buy a stake in the Associated Cement Company.

After the deal, it became the second-largest cement producer in India. But its production capacity is still below the world average. As a result, it is struggling to cope with rising energy prices.

The company has diversified into clean energy and data centres. It has a large presence in 90 countries. And it plans to expand its capacity by 43 per cent in the next five to six years.

Holcim's plan is to expand in Asia and to reduce its reliance on carbon-intensive cement. To achieve this, it will set up integrated grinding units, bulk terminals, and brownfield and greenfield projects. This will increase its capacity to a total of 130 MTPA in the next five to six years.

According to the business standard newspaper, the group plans to raise its cement capacity by 43 per cent. The company has already acquired rival cement assets, such as Binani Cement and Century Textiles.

India's second-largest player in the cement industry

Ambuja Cements Limited is one of the largest cement producers in India. It markets cement domestically and exports clinker. With a production capacity of 31 million tonnes and eight grinding units, the company has over 50,000 channel partners.

Adani Group recently acquired two cement companies. The group acquired Ambuja Cements and ACC, both owned by the Swiss-based Holcim Group.

This was the largest acquisition in the history of Indian industry. The companies' operations in India are valued at $10.5 billion.

The purchase will help the Adani Group consolidate its dominance over the country's economic infrastructure. The company has extensive experience in the construction, energy, ports, and solar industries.

Besides acquiring a majority stake in the two cement firms, Adani will also lead the new empire. The new cement enterprise will have a capacity of 70 million tonnes per year.

Adani has already begun developing major assets in the real estate and power generation sectors. The company has also expanded to port and airports, as well as telecom. Moreover, Adani Group has invested $70 billion in clean energy business.

The company also plans to double its cement manufacturing capacity in the near future. In addition, it will focus on advancing the Circular Economy and the UN Sustainable Development Goals.

The Adani family has a history of cement industry dominance. In May 2022, they purchased Holcim of Switzerland's Indian interests.

The acquisition was structured in such a way as to avoid the capital gains tax. This was able to put Adani in a stronger position in the cement industry, despite the competition from rivals such as UltraTech.

ACC's production capacity to move up to 81.9 mtpa

The latest tally of the nation's largest cement producer and tamer is a case of two hands on the wheel. ACC's cement trifecta is a hefty one, but it's not as if it were a full house. One of the big boys is making a move to reclaim its crown. There are a few contenders, including JSW Group (JSW) and a slew of small and medium sized players such as Bibop and Agarwal Group and a couple of new entrants abound. Taking the crown from one or two hands on the wheel is a tall order, especially given the current favs.

Aditya Birla Group joins race to buy out the Swiss cement giant Holcim's stake in Ambuja Cement and ACC

Ultratech Cement, the flagship company of the Aditya Birla Group, has entered into a deal with Swiss cement maker Holcim. The deal is expected to expand the company's capacity in India, creating more capacity in bulk terminals, integrated grinding units and other facilities across the country.

Ultratech is one of the largest cement makers in India. It has acquired rivals like Shree and Binani in the past. As a result, its total capacity is nearly 70 million tonnes in India. In 2013, it also made an acquisition of the cement business of Century Textiles.

According to reports, Holcim is looking to sell off its stake in Ambuja Cement and ACC, the largest cement producers in the country. It plans to focus on sustainable building materials and diversify from its core cement business. Other players like JSW and ArcelorMittal are competing to acquire the group's Indian assets.

According to a Financial Times report, JSW is preparing a $7 billion bid for Holcim's India subsidiaries. Sajjan Jindal, chairman of the JSW Group of companies, will contribute $4.5 billion in his personal fortune to the deal. He will also help raise a portion of the debt by pledging it with private equities.

Ultratech, which is owned by the Aditya Birla Group, has a market cap of Rs 1.12 lakh crore on Tuesday. It is the second-largest cement producer in the country. On Monday, its shares had risen 2.9 percent.

Deal earns per share (EPS) and return on capital employed (RoCE) accretive

If a company is planning to acquire another, then EPS accretion is a very important metric to track. The accretion is the benefit accrued to shareholders as a result of the acquisition.

ROCE, the return on invested capital, is a financial measure of the profitability of a firm. It is calculated by dividing the company's net operating profit by the amount of capital it has employed.

This metric is sometimes used in conjunction with other factors such as the price-to-earnings ratio (P/E), net income, and earnings per share. However, a higher ROCE indicates a stronger performance.

Some analysts prefer ROCE to the other two profitability metrics. While a high ROCE can mean a strong return on invested capital, it also indicates a more efficient firm.

Return on capital employed is similar to ROE in that it can be calculated using corporate financial statements. A lower return on capital employed may indicate that a company has a lot of cash available to invest, which can skew the calculation. Investing in new opportunities can also increase the value of a business.

The P/B is another metric that is often used to assess a company's performance. If a stock trades at a low P/B ratio, then it can be a sign that the company is undervalued. On the other hand, a lower P/B can be indicative of a company that is fundamentally unsound.

ACC's volumes rose 3% y-o-

The first quarter of the new fiscal year is now over. It was a quiet one for the industry, as most businesses stayed flat or saw their revenues grow only modestly. However, cement makers have been under pressure from rising costs. Kotak Institutional Equities estimates fuel cost inflation in the first half of the year to be around 15 percent. This has led to muted earnings expectations. As a result, the top line growth is half that of the preceding three quarters.

During the quarter, ACC saw volume growth of 5%, albeit at a modest rate. Capacity utilization improved to a solid 90%. Yet, the company's volume growth wasn't enough to sustain its market share. Higher cost inflation and muted demand at the start of the year did not help.

In the first quarter, ACC also commissioned a new grinding unit in Dhanbad and upgraded its Tikaria grinding plant in Uttar Pradesh. Meanwhile, it approved the next phase of its waste heat recovery unit (WHRU) projects. These initiatives should help the company's bottom line in the long run.

Despite a good start to the year, cement makers have been under pressure from rising cost inflation. The cost of diesel, coal and fly ash are increasing at a fast pace. Moreover, the price of slag has been creeping up. ACC's best efforts at managing cost have reaped some rewards. For instance, the company reported savings on power freight costs and other expenses.

Ambuja Cement Future Price

The future price of cement may vary from year to year because of many factors. But, one of the most important factors is the growth of the industry. A number of people are expecting the growth of the cement industry to be good in the future. For instance, the capacity of the cement industry is expected to grow to 100 million tonnes. Another factor is the prices of coal and petcoke. In addition, the stock prices of companies involved in the cement industry may increase or decrease.

Coal prices

Ambuja Cement has been on the decline in recent months due to higher fuel prices and rising coal prices. This has impacted its net profit, with a decline of 14% in the first quarter of this year. However, analysts expect a positive outlook for the next couple of months and for the urban infra sector, which should boost its earnings.

The International Energy Agency projects Indian coal demand growth in July to be at least 3%. While the market has largely remained stable during this period, the ongoing developments in Ukraine will have a significant effect on coal prices.

Coal is also a critical raw material for cement production. It is a crucial component of the clinker process. It is a constituent in the clinker, which provides thermal energy for the kiln operation. A tonne of clinker requires 200 to 220 kilograms of coal.

As coal is an essential raw material in the cement manufacturing industry, cement companies have resorted to buying the coal in the open market. Prices for coal and petcoke have risen in recent years, and this may increase the operating cost per tonne. Hence, it is important for cement producers to find cheaper sources of coal.

Coal consumption has increased during the past few years. Although, this has not been proportional to the expansion of the cement industry. In fact, the granulated slag produced from steel plants has caused a reduction in the consumption of coal for the cement industry.

While cement prices have stabilised and firmed up over the past few months, they continue to lag behind costs. In particular, cement makers have responded to the increase in costs by implementing new and more efficient energy-saving systems, such as coal washeries.

The cement industry in India has been hit by high power and fuel prices over the last few years. This has pushed cement manufacturers to look for alternative fuels, such as petcoke.

Although a strong monsoon is expected to help cement producers in the short-term, it should not be viewed as a positive in the long-term. For the first six months of this year, the earnings are likely to be subdued. Nevertheless, in the CY22-23, the demand for cement is expected to remain strong. Moreover, this could drive higher volumes and utilisation levels than the company expects.

Petcoke prices

The Ambuja cement future price has been on the move this year. Although the company has announced plans to increase its capacity by over a million tons per annum, it has not outlined a timeline for the task. A recent note from analysts at Prabhudas Lilladher said that the exit of Holcim may delay the process by years.

Not content to rest on its laurels, Ambuja Cement has introduced a new Marwar cement plant in Rajasthan. In fact, the company is on track to expand its capacity by 9m tonnes in Ropar, Punjab. Likewise, the company has also opted to pay out a nice sum in the form of a dividend.

For a company that has been around for nearly a century, the company has managed to stay afloat by sticking to its guns and keeping a close eye on its cost control. As such, the company's dividend is well deserved. At the same time, the company has not ruled out the idea of going public. If and when the time comes, the company will likely face stiff competition from its larger rivals.

On a more positive note, the company has unveiled a slew of innovative product and service offerings, including its innovative new Smart Cement. This new cement material is made using renewable sources of energy, and the company claims to be the first to achieve this feat in the country. Furthermore, the company's latest offerings include a host of other technological advances aimed at enhancing the quality of its products and services.

While the company has a plethora of product and service offerings, the most intriguing one has to be its upcoming Smart Cement, which is slated to be launched by the end of March. It is hoped that this new product will not only boost the company's competitive edge, but will also boost the company's bottom line.

Stock price prediction

There are some major catalysts driving the cement sector, but what exactly is the Ambuja cement stock price prediction? Here's a brief overview of its strengths and weaknesses. The key question is: is it a buy?

In the short term, Ambuja Cement has a strong presence in the north, with new plants in Rajasthan and Ropar in Punjab. However, the company has also been facing rising coal and petroleum coke prices. Its margins are expected to bottom out in Q2FY23.

On the other hand, Ultratech cement has seen its EBITDA/t dip by 56% in the first quarter of this fiscal. That's a drop, but the company has plans to offset it with a focus on efficiency.

The company has recently launched a new composite cement product. And, it also has a revamped plant in Rajasthan. These are all good reasons for investors to consider buying. But what are the main reasons for the recent surge in cement stocks?

The most significant is that the sector is outperforming the market. This is thanks to higher petcoke prices and the ongoing Ukraine-Russia conflict. If this trend continues, the sector will see a recalibration in the next three years. Those looking for a good entry point might want to consider the stock, especially given the strong fundamentals and low debt levels.

Another positive is the company's increased cost savings. They are also on track to boost capacity by nine million tonnes in Ropar and Bhattisgarh in Punjab. Moreover, the company is planning to increase its cement production to 100 million tonnes per year by 2022.

The company has also announced plans to raise a substantial amount of funds through a secondary offering. Although it's not clear how much will be raised, it is clear that there will be a huge demand for cement in the coming months.

Ambuja Cement's fundraising plan is just one example of the company's desire to grow its business and strengthen its competitive position. The company also has plans to improve its EBITDA/t gap and expects to see higher profits in the second half of the current fiscal.

Growing cement capacity to 100m tonnes

Ambuja Cement Ltd is a leading cement producer in India. It produces cement under the Ambuja brand. The company has ambitious growth plans. In addition, Ambuja Cement has a multi-pronged strategy that includes a triple bottom line accounting method, True Value, and an overarching corporate environment policy.

One of the key factors in cement production is the use of raw materials such as coal and petcoke. Cement companies have started planning ways to mitigate rising costs for these materials. They also plan to expand their sales base to meet growing demand.

After acquiring Holcim's cement business, Adani Group hopes to double annual cement making capacity by 2027. To support the capacity expansion, Adani plans to infuse Rs20,000 crore into the Ambuja Cement. This amount is set to be spent on capacity enhancement and technology investments. Consequently, analysts believe that over 50 million tonnes of capacity could be converted in the next two to three years.

While Adani's entry may not disrupt volumes, it is expected to add significant margin expansion. In fact, Adani believes that its unique integrated business model will benefit the cement sector. Moreover, the port-to-power conglomerate often aligns with the nation building priorities of Indian Prime Minister Narendra Modi.

Adani's interest in the cement industry is based on a belief in the growth potential of India. For instance, the company has invested in a captive port that facilitates cleaner, cost-effective shipments of bulk cement. Moreover, the group has started diversifying into green energy.

In May, Adani acquired ACC Limited, a subsidiary of Holcim India Pvt. Ltd. As a result, Adani became the second largest cement maker in South Asia. Currently, the company has six integrated cement manufacturing plants.

Although the acquisition has yet to be finalized, it reflects Adani's strong belief that the cement sector is a lucrative investment opportunity. Moreover, Adani also anticipates government initiatives that will spur infrastructure growth in India.

At present, the company has six plants, which are supplying product to a combined capacity of 31 million tonnes per year. In addition, the company plans to expand capacity by adding four more plants in 2021. Consequently, Ambuja Cement is poised to meet the growing demand of the country.

There are many things to look at when investing in the stock market. One of the key areas is the future price of the company. Obviously, the future price of a company depends on the growth plans, Coal prices, Stock prices and more. In this article, you will learn more about these aspects.

Coal prices

Ambuja Cement's stock price has been under pressure due to the rise in fuel prices. However, the company has been making progress in reducing its specific energy consumption and fixed costs. Nonetheless, it remains to be seen how much Ambuja's stock can grow in the future.

Coal is an important input in cement manufacture. It is used to generate thermal energy in the kiln, which is the heart of cement production. Since coal is imported, the cost of fuel has been an important concern for Indian cement companies.

Over the past few years, the industry has resorted to alternative fuels such as petcoke. The use of these fuels has helped improve profitability. But the rising prices of petroleum coke have been a cause of concern for the industry.

India's coal demand is expected to grow by 3% in the next few years. This will be driven by a growth in the economy and expanded electrification. In addition, there are plans to expand the country's capacity for coal-based cement manufacturing.

A recent note by Motilal Oswal stated that cement companies are planning to raise their prices in response to the price spike in coal. They have also resorted to open market purchase of coal to cope with the cost inflation.

A recent report by the International Energy Agency stated that India's coal demand will be strong in the next two years. However, this is likely to be limited by the weakness of the monsoon. That said, a sharp recovery in cement demand could see a higher than expected volume growth.

In the meantime, Ambuja Cement has a lower cost margin than most peers and is investing in a potential seven-million-tonne per year expansion plan in the eastern region. Consequently, it expects to report a marginally lower-than-expected decline in Ebitda margins in the current quarter.

Nevertheless, despite a drop in Ebitda, the company's net profit declined by 14% compared to the previous year. Overall, it has maintained a sell rating and maintains its neutral call.

However, the stock is under pressure from rising coal prices. As a result, Ambuja has cut its target price to Rs 315 from the previous price of Rs 324.

Ambuja Cements Ltd. has come up with a new Marwar cement plant in Rajasthan. It also plans to double the size of its flagship cement plant in Bhattisgarh. Currently, it produces more than a million tonnes of cement a year. In 2022, it expects to produce over one hundred million tonnes of the stuff.

The company's board meeting is scheduled on 30-Apr-2019. This is a good time to check out the company's latest financial performance. They plan to pay out a decent dividend of INR 1.50 a share. As with any stock, a dividend sized reward can't be expected from every quarter. To that end, the company is looking at ways to improve its cash flow.

The company's chief financial officer has also outlined his plans for the next five years. He expects to grow the business's consolidated revenues by more than 25% and expand the presence of its brands in the Indian subcontinent. Meanwhile, the company has a solid track record in acquiring companies. For instance, in the past two years, it has purchased Holcim, Tata Sons and a couple of smaller firms in order to enhance its geographical coverage and expand its product range.

Keeping up with the competition is no easy feat, but the company has found a way to stay a step ahead of the pack. In terms of innovation, the company is implementing a "virtualisation" program to allow for centralized control and management of its businesses. In addition, the company is looking at ways to improve efficiency at its plants and operations. One of the more interesting projects involves enhancing its IT infrastructure and rolling out a cloud-based ERP and HR software suite.

Stock price

Ambuja Cement (Ambuja Cements Limited) is one of the largest cement manufacturers in India. The company has a market capitalization of over a billion dollars and is on track to increase its clinker production to 9 million tonnes in Ropar in Punjab and Bhattisgarh in Madhya Pradesh in coming years.

With regard to the latest happenings in the Indian cement industry, the recent surge in petcoke prices has been an interesting one. Prices increased over a whopping 93 percent year-on-year in April. However, it has not deterred the cement producers from looking for ways to mitigate the impact of this rise.

One of the main factors that led to the increased price of the commodity was the ongoing conflict between Ukraine and Russia. This has affected the price of coal. As a result, the price of coal increased about 43% from a month ago.

In the meantime, the company has started planning for the next generation of clinker production at its Marwar-Mundwa plant in Rajasthan. It is expected that the plant will boost margins. Also, the government has offered additional incentives for the project.

Ambuja Cement has also started releasing improved composite cement products. Some of these include the 'Ambuja Compocem' brand.

Ambuja Cement's stock has been in the dumps in recent times, and the recent drop in the company's stock price mirrors the decline in the stocks of the Adani Group. The promoters of the group plan to inject another Rs20,000 crore into the company.

Axis Securities has rated the Ambuja Cement stock as a 'hold'. But there are several reasons why the stock has been on the slide lately.

For starters, the Ambuja Cement stock has been under pressure due to rising fuel and coal prices. In addition, the Russian invasion of the Ukraine has pushed the cement producer's stocks down.

Despite this, the company is on course to launch a new cement plant in Punjab. During the first quarter of 2019, it will increase its production capacity to 50 tons per day. That is a major step in boosting its cement production to 100 million tonnes a year.

Growth plans

Ambuja Cements, which is part of the Holcim group, has a strong growth plan. The company has started the next phase of its capacity expansion. It is expanding cement grinding capacity in the eastern region, with a greenfield integrated plant slated to commission by the July-September quarter. This is expected to increase the total investment to over Rs 2,350 crore.

The company is also evaluating brownfield expansion projects at its Bhatapara and Maratha plants. These projects are expected to further strengthen its market presence. With the additional investments, the company plans to increase its cement production capacity to 50 million tonnes per annum.

The company's net profit margin was 16 per cent. The operating EBITDA margin was 23.7 per cent. This reflects the performance of the company's cost management initiatives. Moreover, the company is accelerating its investment in clean energy efforts. In the coming years, Ambuja aims to reduce its CO2 emissions by 43 per cent.

The company also announced its 'Plants of Tomorrow' program, which involves automation and digitalisation. It aims to cut down CO2 to 463 kg CO2/t cem. Additionally, it plans to reuse 13.5 million tonnes of waste.

The company also plans to add 20 million tonnes per annum to its existing 30 MTPA capacity. It is aiming to complete the entire expansion in 3-5 years. Also, it will install 54MW of WHR at its Ambujanangar plant in Gujarat.

On the demand front, the government's focus on infrastructure development is likely to drive cement demand. India's population is projected to grow from 1.37 billion in 2030 to 1.5 billion in 2050. During the same period, urbanisation will also increase, with the number of cities expected to grow to more than 600. Consequently, the country's economic activity is also expected to increase.

According to estimates, the country's GDP will grow by 7.6 per cent in FY22. The Indian economy is expected to grow by 8.8 per cent in FY23. Furthermore, the government's focus on housing for all is expected to spur the growth of cement demand.

Ambuja Cements is well positioned to meet the increasing demand.

Ambuja Cement Foundation

The Ambuja Cement Foundation is a non-profit organization, committed to building the infrastructure of rural communities. Through its projects, the foundation is helping communities to build schools, medical clinics, and more. It also aims to develop the skills and knowledge of the women who are the leaders of these communities. In addition, the foundation is working to increase access to clean water and sanitation for communities.

About the NGO

The Ambuja cement foundation is the corporate social responsibility arm of Ambuja Cements Ltd. It focuses on skill-based livelihood generation, natural resource management, agricultural development, education support, rural infrastructure, and health and sanitation. In addition to its flagship projects, the organization also has many other initiatives in its portfolio.

One of the most prominent CSR initiatives of the company is the Ambuja Manovikas Kendra. This initiative is focused on improving the quality of life for children with special needs. For this, Ambuja Cement has signed a memorandum of understanding with the National Skill Development Corporation (NSDC). As part of the deal, the company will provide over one lakh students in 14 different locations across India with training programs.

Another impressive initiative of the company is the use of technology for sustainable waste management. Ambuja Cement has perfected the art of making use of solar energy for co-processing waste from other industries. Additionally, the company has set up a plant in the Ambuja Hospital, which allows it to supply oxygen to COVID-19 centres. Using a combination of thermal scanners, oxygen concentrators, and triple layer masks, the company is able to provide oxygen to patients.

Other innovative initiatives of the company are the use of percolation wells and check dams to manage water resources. These initiatives aim to ensure that the communities where they operate are healthy and safe. Moreover, they also strive to make day-to-day life more convenient for residents.

Another unique initiative of the company is the Skill Education and Development Initiative (SEDI). This program aims to provide skills and employment to rural youth. It also focuses on providing entrepreneurship training and helping students become successful business owners.

In order to improve the infrastructure of villages, Ambuja Cement has constructed 92 kilometers of roads in the last financial year. Moreover, it has invested Rs.3.3 crores in three non-profit organizations. Through these initiatives, the company has made a positive impact on society.

As of now, the Ambuja cement foundation has established its presence in ten states in India. In the last few months, the organization has been able to touch the lives of over seventy-four thousand youth. They have also worked towards improving the healthcare infrastructure of the country.

In fact, the Dow Jones Sustainability Index rated Ambuja Cement as the fourth-best construction material company in the world. With the company's focus on sustainability and its CSR initiatives, the future looks bright for the company.

Along with its CSR efforts, the company also works on improving the healthcare and education system of the country. Since its inception, Ambuja has made India proud. In fact, it has helped the country become self-sufficient in the infrastructural needs.

The Ambuja cement foundation is a prime example of how to harness the power of partnerships. This way, the organization is able to solve pressing problems in the community and bring prosperity to the region.

Frequently Asked Questions (FAQs)

The Ambuja Cement Foundation is a Corporate Social Responsibility (CSR) arm of the Ambuja Cement Limited. It is a non-profit organization managing various programmes aimed at providing assistance to the community where the company operates. Its headquarters is located in Mumbai, Maharashtra, India. Since its inception, the Foundation has worked with communities to address different needs.

The Foundation is an extension of the corporate vision and philosophy of the Ambuja Cement Company. Incorporated in 1993, the Foundation focuses on water resource management, skill-based livelihood generation, and people-centric integrated rural development projects. With the help of a pan-India presence and diversified programmes, it works with different stakeholders to address their unique needs. The foundation aims at improving the quality of life of the people in the region and making day-to-day living easier for them.

The Ambuja Cement Foundation is part of a larger organisation called the Ambuja Cement Corporation (ACC). ACC is a member of the Adani Group, one of the largest conglomerates in the world. Through its initiatives, it has strived to make India self-sufficient in its infrastructural needs.

The Ambuja Cement Foundation's board of directors consists of stalwarts from the industry. These include Sharadchandra Kale, P.K. Laheri, and C.S. Rajan. They are all known for their leadership qualities and have a strong track record of positive impact in the local community. As a result, the Ambuja Cement Foundation has gained wide recognition for its achievements and has received several awards.

For instance, the Ambuja Cement Foundation won the Best in Class Logistics Safety' award at the 13th Express Logistics and Supply Chain Conclave. Moreover, it received a prestigious award from the ICSI for CSR Excellence. Another reason for its recognition is its contribution to the environment. ACC's initiatives have helped in rejuvenating traditional water bodies in Rajasthan and Vidharbha. Also, through its efforts, the foundation ensured better water management for the rural communities.

In addition, the Foundation has also worked on healthcare. The company provides support for the skills development of health workers. By improving the quality of healthcare in India, the company helps residents get access to medical facilities and services at affordable prices.

The Foundation's mission statement is central to all its operations. To achieve this, the Foundation works with different stakeholders and implements participatory programs. The foundation also engages in skill-based livelihood generation, rural infrastructure, and women's empowerment. Apart from this, it also works on protecting the community where it operates. Moreover, the Ambuja Cement Foundation has developed a potable water distribution system.

The foundation is active in 50 districts across 11 states in India. The Ambuja Cement Foundation works with a range of community partners including the government, nonprofit organizations, and other like-minded companies. During the last financial year, the company built 30 schools, 92 kilometers of roads, and a network of toilets in 146 villages. All of these initiatives have made life easier for the community members.

Corporate social responsibility

The Ambuja Cement Foundation has been a socially responsible organisation since its inception. It works with various stakeholders and communities to create sustainable development. Through its programmes, it provides education, livelihood generation and women empowerment. In fact, its work has earned it the Federation of Indian Chambers of Commerce & Industry (FICCI) CSR Award 2020-2021 in the Women Empowerment category.

Ambuja Cement Foundation's Corporate Social Responsibility (CSR) activities aim to build a better India. These include community infrastructure projects, healthcare, and women empowerment. As one of the largest cement companies in India, it reaches out to nearly one lakh people in 101 villages across four states.

Since its inception, the Ambuja Cement Foundation has created a tremendous impact on the lives of its stakeholders. For example, it has supported 2970 self-help groups, including women's and children's groups. During the last financial year, the company constructed 92 km of roads, 30 schools, and 284 community places. Furthermore, the company also provided ration kits to migrant labourers. Additionally, it was able to ensure that 100% of the toilets in 146 villages were covered. A potable water distribution system was also installed.

Apart from this, the Ambuja Cement Foundation has worked on several skill-based livelihood generation projects. Thousands of rural women have been able to take up jobs, earn money, and become self-dependent. This has helped the women take on the role of leaders and breadwinners.

In addition, Ambuja Cement Foundation's work has focused on ensuring that quality health care is accessible to the poor. The foundation has implemented various programmes to enhance the skill sets of health workers. Moreover, it has also supported the introduction of telemedicine.

As part of its Women Empowerment Programme, the foundation has trained 31,000 women. They were then able to earn incomes, take on leadership roles, and become change makers in their communities. Further, the company has enabled 9,000 women to participate in revenue generation activities.

The Ambuja Cement Foundation has successfully established itself as a thought leader. To ensure that its interventions are meaningful, the organisation has made its mission statement central in all of its operations. With a focus on sustainability, it has improved the sanitation, hygiene, and access to market centres. Also, it has made India self-sufficient in infrastructural needs. Moreover, it has perfected sustainable waste management.

Another project in which the Ambuja Cement Foundation is actively involved is the Fingerprinting program. Through this program, the foundation facilitates the formation of village development committees. The committees are led by local communities and work towards achieving behavioural changes in the communities.

The Ambuja Cement Foundation's interventions are especially important in the rural regions. They provide sanitation and percolation wells, check dams, and potable water distribution systems. Moreover, they support the formation of local farmers' groups and help increase production.

Buying a 3 Point Slinger for Camera

If you're in the market for a new 3 point slinger for your camera, there are several factors that you should consider. These include water-proof construction and organizational features, including a mesh pouch for small electronic devices, zippered pockets for camera accessories, and a cradle for your camera. Additionally, you should choose a camera slinger made of durable materials like ripstop nylon or bombproof webbing.

Three-point slinger for camera

A 3-point slinger is a useful tool to hold a camera. You can buy different models depending on your budget, but you need to make sure that the price you pay is appropriate for the features you need. In addition to that, you should also make sure that the slinger is water-resistant. Also, look for features that will make your photography experience more convenient. Some slingers come with a cradle, which can make shooting even more convenient.

A good three-point slinger for camera will be comfortable to use. It should have a wide base to accommodate your camera, but be lightweight enough to be portable. It should also be adjustable. The material should complement your camera's overall style. The material should also be durable and comfortable.

A good three-point slinger for camera should be waterproof and come with useful organizational features. For instance, it should have a mesh pouch for accessories such as batteries and a lens. It should also come with a camera cradle, so you can place your camera on it without having to dig through your bag.

A 3-point slinger for camera is an essential accessory for photographers. It allows you to hold a Go Pro or DSLR with ease. It fits most camera bodies and is easy to adjust. It can also be attached to a tripod or a monopod.

Easy to use

If you want a camera strap with lots of storage space, consider purchasing a camera point slinger. These bags are made of sturdy materials and have a convenient snap hook that clips onto your camera. They also have two pockets: an internal and an external mesh one. They are made to be water resistant and protect your camera.

There are many different types of camera bags. You can choose from shoulder bags, backpacks, and sling bags. Choose the type that best suits the size and type of camera you plan to carry. Some bags come with pockets for lenses and other camera accessories. Shoulder bags can be more convenient than backpacks for small cameras.

Another camera accessory that will help you take better pictures is a 3-point slinger. A point slinger will help you get sharp points and precise lines without damaging your camera. It is also great for freehand lines and curves. Whether you're taking photos for business or for personal enjoyment, a camera point slinger will help you capture the best shot.

A camera point slinger is an excellent accessory for those who like to travel light, yet still want to keep their gear organized. Its lightweight design and multiple compartments will make it easy to carry. Moreover, it's much more comfortable to wear than a camera backpack, and it also provides more space for your other equipments.

Versatile

The 3 Point Slinger is a must-have accessory for any photographer. This versatile mount lets you easily attach your DSLR or Go Pro to the body of your camera. It is lightweight and comfortable to use and fits most cameras. It also has a variety of features that make it ideal for everyday use.

When buying a 3-point slinger for your camera, look for features such as water resistance, organizational pockets, and a cradle for your camera. Also, consider the material, such as ripstop nylon or bombproof webbing. Lastly, make sure it fits your body type. It should also not interfere with the camera bag. For best results, choose one made from high-quality materials.

Whether you are shooting in the field or in a studio, this versatile pouch can support a variety of cameras. Its multiple attachment points make it easy to secure your camera to your belt or waistband. It is also scratch-resistant and comfortable to use. You can get a 3-Point Slinger for your camera from Amazon US and UK, as well as other stores around the world.

Another 3-Point Slinger for Camera bag is the Think Tank Retrospective 7. This waterproof camera bag has a flap design and many organizational pockets for your camera. It also has a rain cover, which protects your camera from the elements. It is compatible with most DSLR cameras.

Safe

The 3 Point Slinger for camera is a versatile camera carrying solution that offers maximum security for your camera and other accessories. This bag comes with a number of organizational pockets, an adjustable shoulder strap, and a flap design. It also has a rain cover and a detachable insert, making it suitable for almost all DSLR cameras.

When choosing a camera carrying solution, it's important to consider the weight of the camera. A weight of less than three pounds means that you won't tire yourself while carrying it. A lightweight camera is easier to move around with this accessory. Some models even feature waterproof covers to ensure your camera stays dry.

A high-quality camera strap should be comfortable to wear. One popular brand is Cotton Carrier Skout, which has a reputation for making quality products. This camera strap is durable and breathable, and it comes with a locking carabiner and plate. This strap is available for around $14.

A camera slinger can be used with a DSLR, mirrorless camera, or compact camera. This accessory comes with an ergonomic pad to provide a stable and comfortable position. The camera can be worn on either shoulder, allowing the user to move their camera quickly to the desired scene.

Comfortable

Choosing a comfortable point slinger for your camera is an important part of your photography process. There are many options available, and your budget will also play a role in which one you buy. Choose a sling that has padded shoulder pads and adjusts to the size of your camera. Whether you prefer a compact or an SLR camera, a comfortable point slinger will make carrying your camera much easier.

OP/TECH USA makes a compact camera slinger that offers cushioned relief for even the smallest cameras. Its low-profile design and 4mm neoprene padding are designed to help you hold your camera more securely. It fits both compact and DSLR cameras, and comes with an underarm strap for added safety.

Another option is the Think Tank Retrospective 7. This waterproof point slinger features an adjustable shoulder strap and flap design for easy camera access. It also has multiple compartments and pockets to keep your lens accessories organized. A mesh pouch will also protect your camera and lenses from water and dust. A wide base design also makes it easy to carry your camera without any discomfort. The Think Tank Retrospective 7 is an excellent option for many photographers.

Before purchasing a point slinger for camera, choose the one that best fits your body. The strap should be snug enough to hold the camera but not so tight as to cut off circulation. In addition, it should be adjustable, so that it will not cause pain. The most comfortable point slinger for camera is one that fits snugly around your chest and doesn't cause discomfort.

Color

A color point slinger for camera is a versatile piece of camera equipment. It allows you to carry a DSLR camera with all the necessary accessories while still allowing you to hold the camera comfortably. This type of camera sling is usually made of waterproof leather and features an adjustable shoulder strap and a flap design. It also features many organizational pockets and a rain cover. It is compatible with most DSLR cameras.

The Altura Photo 3 Point Slinger is a multi-functional tool, which can be worn over the shoulder, across the body, or around the neck. It comes with three swiveling points for maximum versatility. The design of this camera slinger makes it versatile and easy to use. It is lightweight and easy to operate, and it can be used with a variety of lenses.

The 3 point slinger is also lightweight compared to a traditional camera bag. Its organization features and compartments make it easier to carry around, and the lighter weight allows the photographer to move comfortably without worrying about the weight of the camera. This makes it easier to capture the perfect picture without feeling strained or fatigued.

The Rapid Fire Camera Strap is also a good choice for carrying DSLR cameras. It is lightweight and sturdy and includes a quick metal release. It also offers space for other pro equipment. It is ergonomically designed for a comfortable fit.